Identifier
Created
Classification
Origin
09TELAVIV675
2009-03-20 14:35:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tel Aviv
Cable title:  

NETANYAHU REQUESTS EXTENSION IN EFFORT TO BRING

Tags:  PREL PGOV IS 
pdf how-to read a cable
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PP RUEHROV
DE RUEHTV #0675/01 0791435
ZNR UUUUU ZZH
P 201435Z MAR 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 1088
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 TEL AVIV 000675 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV IS
SUBJECT: NETANYAHU REQUESTS EXTENSION IN EFFORT TO BRING
LABOR INTO COALITION

REF: A. TEL AVIV 646

B. TEL AVIV 580

UNCLAS SECTION 01 OF 02 TEL AVIV 000675

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL PGOV IS
SUBJECT: NETANYAHU REQUESTS EXTENSION IN EFFORT TO BRING
LABOR INTO COALITION

REF: A. TEL AVIV 646

B. TEL AVIV 580


1. (SBU) SUMMARY. On March 20 President Shimon Peres
granted Prime Minister-Designate Binyamin Netanyahu's request
for a 14-day extension to form a coalition. Netanyahu's
request stemmed from the agreement he reached the evening of
March 18 with Labor party chief and Defense Minister Ehud
Barak to join his government. The extra time allows Barak an
opportunity to have his party approve the plan to partner
with Netanyahu, but Barak faces strong internal opposition.
Netanyahu also has not given up hope on Kadima, and his party
has leaked details of what he has offered to entice that
party to join. If Labor (or Kadima) joins the coalition it
would help Netanyahu take office with a more balanced
government, but it also would leave Likud party stalwarts
with few and relatively junior ministerial posts, which could
prompt intra-party squabbling. End Summary.

--------------
POTENTIAL PACT WITH LABOR COMPELS
NETANYAHU TO REQUEST AN EXTENSION
--------------


2. (U) Netanyahu on March 20 requested and received from
President Shimon Peres a 14-day extension of the deadline
(now April 5) to secure a governing majority. Netanyahu in
the past few days appears to have reached an agreement with
Labor Chairman Barak to bring Barak's faction into the new
government. Even before the election, Netanyahu had
indicated that he wanted to form a unity government and keep
Barak as Defense Minister. Barak, however, must first gain
approval from his party, which is scheduled to formally
consider the proposal on March 24. A vocal group of leftwing
Labor MKs has voiced strong opposition to joining the
government, and is attempting to form a blocking majority
while also looking for procedural roadblocks that would delay
the meeting until after Netanyahu's extension expires. Labor
MKs opposed to joining the government argue that the party's
path toward re-gaining relevance lies in serving in the
opposition. Barak has countered that Israel faces critical
issues and that the party can serve the nation better from
inside the government. Also, Labor would gain nothing by
playing second-fiddle to Kadima in the opposition. A poll
recently conducted by the Panorama Marketing Institute in
Israel showed that more than 60% of Labor party voters
support their party joining the government.



3. (SBU) Likud and Labor officials think their talks will
put pressure on Kadima to join a broad-based coalition. Two
Kadima MK's close to party chief Tzipi Livni told poloffs on
March 19, however, that their party is destined for the
opposition following the failure of Livni and Netanyahu to
come to terms. The Likud Party leaked to the press details
regarding what Netanyahu offered Livni (including keeping the
foreign ministry portfolio and leading negotiations with the
Palestinians) as another means of public pressure, but, for
now, Livni remains adamantly opposed.

--------------
POTENTIAL IMPACT ON THE RIGHTWING
--------------


4. (SBU) A Likud political advisor told poloff March 19 that
he anticipated a deal with Labor would alienate the rightwing
National Union Party, but that party would not be necessary
to form a coalition. He affirmed that discussions with the
two ultraorthodox parties (SHAS and UTJ) continued and did
not foresee major obstacles to their joining the coalition.
The new "Jewish Home" party was also likely to join, but its
three Knesset members are at odds with each other over
political spoils rather than ideological positions.

--------------
ANY SLOTS LEFT FOR LIKUD?
--------------


5. (U) Netanyahu's decision to offer Barak the defense
portfolio means that if Labor goes along then none of the
senior ministries will go to the incoming premier's party
colleagues (Note: Netanyahu appears ready to maintain the
finance slot for himself -- for the moment, at least -- and
has already agreed to give the foreign affairs post to
Yisrael Beitenu head Avigdor Lieberman. End Note.). The
Likud leader has managed to keep a lid on any internal strife
as he conducted coalition negotiations, but he will face a
test of party unity when deciding which post to offer Silvan
Shalom, who has been the most vocal in complaining about
portfolio distribution.


TEL AVIV 00000675 002 OF 002



6. (SBU) COMMENT: We do not view Netanyahu's request for an
extension as an indication that he will be unable to form a
government. He genuinely wants a broad-based coalition, but
if he fails to lure Labor (or Kadima) he still has a narrow
rightwing and ultraorthodox bloc of parties that he could
present to the Knesset early next month. Even if Barak
prevails in his bid to gain party backing to join the
government, his party may fracture, as some Labor MKs seem
adamant about opposing Netanyahu's government. End Comment.

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